Lucid Motors wins the bankruptcy auction for Nikola's factory in Arizona and other assets.

Lucid Motors, an electric vehicle startup, has surprised many by winning the bankruptcy auction for Nikola's factory in Arizona, as well as other assets of the company, according to a court report. Lucid has committed approximately $30 million in cash and non-monetary considerations to acquire the factory, Nikola's lease agreement at its headquarters in Phoenix, along with "certain machinery, equipment, and inventory."

As part of the deal, Lucid plans to offer employment to around 300 former Nikola employees, the company reported. Lucid's unexpected appearance in Nikola's bankruptcy proceedings is surprising for several reasons. Nikola had been trying to sell its entire business since it filed for bankruptcy protection in February. Lucid focuses on manufacturing passenger electric vehicles and has never worked with hydrogen-powered electric vehicles, which make up a significant part of Nikola's nascent business.

Recently, Nikola's founder, Trevor Milton, who was convicted of fraud in 2022 but received a pardon from President Trump in March, was also considering a bid for the startup's assets. Nikola managed to persuade the court to block Milton's in-person inspection of its factory and other assets before the auction, which took place on April 7.

Lucid has its own factory in Casa Grande, Arizona, allowing it to see value in acquiring additional storage space, testing equipment, and employees. While Lucid was the highest bidder in the auction for these assets, the bankruptcy judge will allow objections to the sale to be filed until 12:00 p.m. ET next Friday, April 11, with a hearing scheduled for 1:30 p.m. ET.